This is my stack trace:

Caused by: com.microsoft.sqlserver.jdbc.SQLServerException: XML parsing: line 1, character 38, unable to switch the encoding
at com.microsoft.sqlserver.jdbc.SQLServerException.makeFromDatabaseError(SQLServerException.java:156)
at com.microsoft.sqlserver.jdbc.SQLServerStatement.getNextResult(SQLServerStatement.java:1373)
at com.microsoft.sqlserver.jdbc.SQLServerPreparedStatement.doExecutePreparedStatementBatch(SQLServerPreparedStatement.java:1185)
at com.microsoft.sqlserver.jdbc.SQLServerPreparedStatement$PrepStmtBatchExecCmd.doExecute(SQLServerPreparedStatement.java:1101)
at com.microsoft.sqlserver.jdbc.TDSCommand.execute(IOBuffer.java:4003)
at com.microsoft.sqlserver.jdbc.SQLServerConnection.executeCommand(SQLServerConnection.java:1550)
at com.microsoft.sqlserver.jdbc.SQLServerStatement.executeCommand(SQLServerStatement.java:160)
at com.microsoft.sqlserver.jdbc.SQLServerStatement.executeStatement(SQLServerStatement.java:133)
at com.microsoft.sqlserver.jdbc.SQLServerPreparedStatement.executeBatch(SQLServerPreparedStatement.java:1065)
at org.apache.commons.dbcp.DelegatingStatement.executeBatch(DelegatingStatement.java:297)
at org.apache.commons.dbcp.DelegatingStatement.executeBatch(DelegatingStatement.java:297)
at org.hibernate.jdbc.BatchingBatcher.doExecuteBatch(BatchingBatcher.java:70)
at org.hibernate.jdbc.AbstractBatcher.executeBatch(AbstractBatcher.java:268)

My file is compile in utf-8 for linux and no encoding in my file, (but i try encoding to utf-8 and utf-16 but same error)

I build my java file in windows
my configuration is

<property name="hibernate.connection.url">jdbc:sqlserver://xxxxxxxxxx;databaseName=xxxxxxxxxxxxxxxxxxx</property>
<property name="hibernate.connection.driver_class">com.microsoft.sqlserver.jdbc.SQLServerDriver</property>
<property name="hibernate.dialect">org.hibernate.dialect.SQLServer2008Dialect</property>
<property name="hibernate.connection.isolation">1</property>
<property name="hibernate.connection.username">xxxxxxxxxxxxxxxxxxxx</property>
<property name="hibernate.connection.password">xxxxxxxxxxxxxxxxxxxxxxx</property>

<property name="hibernate.generate_statistics">true</property>
<property name="hibernate.connection.provider_class">com.frimastudio.commons.hibernate.DBCPConnectionProvider</property>
<property name="hibernate.dbcp.initialSize">0</property>
<property name="hibernate.dbcp.maxActive">500</property>
<property name="hibernate.dbcp.maxIdle">500</property>
<property name="hibernate.dbcp.minIdle">0</property>
<property name="hibernate.dbcp.maxWait">-1</property>
<property name="hibernate.dbcp.validationQuery">SELECT 1</property>
<property name="hibernate.dbcp.testOnBorrow">true</property>
<property name="hibernate.dbcp.testOnReturn">false</property>
<property name="hibernate.dbcp.testWhileIdle">false</property>

<property name="hibernate.transaction.factory_class">org.hibernate.transaction.JDBCTransactionFactory</property>
<property name="hibernate.current_session_context_class">thread</property>
<property name="hibernate.cache.use_second_level_cache">false</property>
<property name="hibernate.cache.use_query_cache">false</property>
<property name="hibernate.jdbc.batch_size">20</property>
<property name="hibernate.search.autoregister_listeners">false</property>

from the stacktrace it looks like the problem is not in parsing Hibernate's configuration file, but in executing a query on the database.

you're probably retrieving a wrongly encoded data? Or try adding some encoding options to the JDBC driver.
Also, try jTDS [ http://jtds.sourceforge.net/ ], a very reliable JDBC driver implementation for MS SQL as it looks like a JDBC problem (if it's not a problem in the content of what you've stored in the DB)